Some local governments offer tax increment financing (TIF) to small businesses in effort to upgrade certain lands

Goal is to improve community's tax base and rejuvenate the area

Essentially, a TIF is way for governments to lend money to a business

On average a TIF can provide 10-15% of project's real estate costs

Benefits to business can come in reimbursements, bonds or cash financing

Mark Graue had opportunity to build dealership on TIF land in Sherman, IL

Had considered land across street but would have had to build new road

Some states have restrictions on lot and building sizes, so TIF funds might not work for dealerships

Problem is usually big lot, small building, which aren't real-estate-tax intensive

Graue's startup costs are lower w/ TIF, but he intends to invest heavily in store w/ Route 66 decor

Says paperwork did slow down business but overall experience was positive

"I can pay to have a road built or I can go across the street and get TIF funds. That’s a pretty easy one." -- Mark Graue, Graue's Route 66 Motors, Sherman, IL